Court clips ‘errant’ lawyer’s wings
Disgraced lawyer Zuko Nonxuba has been struck off the roll of attorneys following allegations that he misappropriated hundreds of millions of rand due to his former clients, mostly minor children related to medical negligence cases in the Eastern Cape.
The case before the Western Cape High Court was brought by the Legal Practice Council (LPC) following several complaints relating to Nonxuba’s alleged conduct.
The court outcome means that he will not be allowed to practise as an attorney any longer, and the funds from his former clients were handed over to the Legal Practice Fidelity Funds (LPFF) who are assisting the beneficiaries to be compensated.
The LPC also took control of the last remaining R100 million in his trust account. However, the council’s investigations showed that the trust balance should have been substantially more.
Nonxuba, who specialised in personal injury and medical negligence cases in various provinces in South Africa, was first admitted as an attorney in September 2000. In April 2003, he established Nonxuba Inc.
Most of his cases involved plaintiffs who are the parents or guardians of minor children who sustained birth injuries because of negligence on the part of medical personnel during the birth process, resulting in hypoxic ischaemic encephalopathy, foetal distress and, ultimately, cerebral palsy, court papers read.
In June 2021, the LPC approached the courts for an order interdicting Nonxuba from practising as a legal practitioner pending the final determination of disciplinary proceedings.
According to court papers, several applications were subsequently launched which included applications to intervene, joinder applications, and a conditional application.
While the interdict application process was under way, it was alleged that Nonxuba had successfully prosecuted five medical negligence claims but had not complied with the relevant court orders in that he did not pay over the money due to the claimants via the trusts that he should have established on their behalf.
In each of the five medical negligence claims, Nonxuba represented children who were found to have suffered debilitating mental and physical harm because of the negligence of personnel of the Eastern Cape Department of Health.
In all five claims, the MEC was ordered to pay substantial damages awards to Nonxuba Inc which, in turn, had to establish, within six months of the court orders, trusts to administer the money for the benefit of the disabled children.
“Despite the fact that the court orders in all five medical negligence claims were made during 2018 and 2019, Nonxuba, as of July 2021, had not established all the trusts, and where the trusts had been established, he failed to pay over the monies due to these trusts,” court documents stated.
The LPC also alleged Nonxuba fabricated accounting records to deceive them and plundered the trust funds under his control by making transfers from the firm’s trust account to its business banking account, “in perfectly round amounts, without being lawfully entitled to transfer such funds, thereby committing the theft of trust funds”.
Noxuba denied any allegation of having knowingly fabricated ledger accounts or of having stolen or misappropriated trust money but admitted that he may not have strictly complied with the LPC rules relating to the operation of his trust account and the keeping of accounting records.
In 2022, Nonxuba was suspended from practising as an attorney after the courts found that the accounting records had been fabricated.
Judge Matthew Francis ruled: “Theft of trust funds by practitioners does not only result in untold hardship for the victims, but it also brings the legal profession into disrepute. On the facts of this matter, it is beyond question that the trust account of Nonxuba Inc had a shortage and Mr Nonxuba could not provide a proper explanation how the deficit and trust shortfall arose. He has in all likelihood caused untold hardship to his clients by not only failing to timeously pay over the funds due to them but also misappropriating a substantial portion of their funds.
“I am of the view that Mr Nonxuba is not a fit and proper person to continue practising as an attorney. His name should, accordingly, be struck from the roll of legal practitioners and a curator bonis be appointed to manage the files and affairs of the public that were entrusted to him.”
LPC executive officer Charity Nzuza said: “This case also demonstrates that the LPC will not hesitate to act in protecting the public against unscrupulous legal practitioners. While we cannot find joy in having any legal practitioner barred from practising, Mr Nonxuba’s conduct warrants the punishment as found by the courts.”
Lawyers for Nonxuba did not respond to requests for comment by deadline.
Cape Times